Scientists arabic team at modern hospital lab, group of doctors

Two years after the Legislature dissolved rules that restricted the opening of new hospitals and major bed expansions at existing ones, changes to the health care landscape are taking shape.

The rollback of the Certificate of Need (CON) law creates growth opportunities for health systems that could lead to big capital spending on construction and medical equipment, while boosting access to health care in neighborhoods without enough providers.

Several local hospital systems are already considering expansions with new facilities.

However, the question is whether the new hospitals will improve the health care system or only add to the higher costs that are making insurance coverage more expensive for many companies. Some critics warn that employee bidding wars between expanding health care systems could drive up costs.

What shouldn’t be overlooked is that removing the CON requirement will allow existing hospitals to expand their bed count, which is less expensive than building new hospitals, said Ray Berry, CEO of Cooper City-based Health Business Solutions, which helps hospitals deal with claims.

He doesn’t expect new competitors to enter the Broward County market because they would be at a disadvantage when negotiating with insurance companies that have established hospital partners there, said Berry, a board member of the North Broward Hospital District, which governs Broward Health.

With all the residential development in Fort Lauderdale, Broward Health Medical Center should eventually grow to accommodate the population, he said.

South Florida already has plenty of beds to accommodate its population, so new hospitals could end up lowering bed occupancy rates for other hospitals, said Salvatore Barbera, associate director of the health care administration program at Florida Atlantic University’s College of Business.

Instead of lowering prices to compete for patients, hospitals may end up raising prices to cover their operating costs with fewer patients, he added.

“It’s probably going to stir up the market, and you may see some failed operations as a result,” said Barbera, a former hospital CEO.

 

Click here to read more about this story.

 

rehabilitation_canstockphoto11992585 760x320

Dallas-based Everest Rehabilitation Hospitals LLC plans to build a $24 million, 40,000-square-foot rehab hospital in Kissimmee for patients recovering from conditions like strokes and brain injuries.

The single-story, 36-bed facility — slated to include shell space for 17 additional beds for future expansion — will be built on about four acres on John Young Parkway near the intersection of Osceola Park Drive.

The planned facility will include inpatient and outpatient physical therapy gyms, aqua therapy, a skills training apartment for patients, gathering areas, a dining facility, in-house dialysis and a pharmacy.

 

Click here for more about this story.

 

Sarasota Memorial Hospital 760x320

Sarasota Memorial Hospital’s 65-acre medical campus in Venice, Fla., is slated to open in November, according to an article in the Herald-Tribune.

The $437 million project will include a cardiology unit/catheterization lab; critical care and intensive care units; 28-bed emergency department; labor, delivery and postpartum unit; and imaging and radiology department.

The campus will feature a five-story, 365,000-square-foot hospital with 110 private rooms and a two-story, 60,000-square-foot medical office building. An adjacent 400-space parking garage is also planned.

 

Source:  HCD

10125 & 10131 W Colonial Dr in Ocoee

Cushman & Wakefield has brokered the sale of the West Orange Professional Center, a portfolio of two medical office buildings located at 10125 & 10131 W Colonial Dr in Ocoee.

The two-story buildings are located directly across the street from the Orlando Health – Health Central Hospital campus. The 38,537-square-foot portfolio was 88.2% leased with a weighted average lease term of over 5.5 years. The property was acquired by OrbVest and SG Property Services. OrbVest is a global real estate company focused on acquiring healthcare real estate assets across the United States.

Anne Spencer and John Skinner with the Florida Healthcare Advisory Practice in partnership with Travis Ives and Gino Lollio of Cushman & Wakefield’s US Healthcare Capital Markets Team represented the seller, Miami-based Larkspur Properties, in the transaction.

“Desirably located adjacent to a major regional hospital facility, the property was a unique opportunity to acquire a dependable income stream from an esteemed tenant roster combined with a value-add opportunity in the lease-up of vacant space,” said Ives, Managing Director. “During the seller’s ownership, several new tenants were signed to the property that increased the overall occupancy and stability of the asset. This building and location offers exceptional synergy across the healthcare landscape.” 

 

Spencer, Director said, “Ocoee is part of the greater Orlando MSA, one of the fastest growing regions in the country for its fantastic climate, affordable housing stock and abundance of shopping and employment opportunities. This growth has led to the rising need and demand from medical users, and therefore investors. The market for medical space on and around the property is nearly fully occupied, putting this asset in great position for further potential future success.”

Orlando Health – Health Central Hospital is a 211-bed, general acute care hospital that features nationally accredited programs in orthopedics, spine and heart care. In addition, the hospital recently completed a 30,000-sf cancer treatment facility.

 

5353FederalHwy-FtLauderdale 760x320

ShareMD, a healthcare real estate and physician practice solution company with corporate office in Alpharetta, Georgia, has closed escrow on a 33,974-square-foot multi-tenant medical office atop .97 acres in Ft. Lauderdale, Florida. Benjamin Silver of Marcus & Millichap represented both Buyer and Seller. The purchase price was not disclosed.

This purchase represents the ninth medical office property purchased by ShareMD in the past eighteen months, and increases ShareMD’s total portfolio to fifteen properties and approximately one million square feet of owned healthcare real estate assets in Florida and California. ShareMD is funded by private equity firm Martis Capital.

“We’re excited to continue ShareMD’s growth in the healthcare facility sector with this acquisition”, said ShareMD’s Chairman and CEO John Bardis. Bardis, the former Assistant Secretary of the US Department of Health & Human Services as well as the founder and former head of MedAssets, continued, “ShareMD provides a range of healthcare space and technology solutions, and this addition to our portfolio provides for additional capabilities in the South Florida marketplace”.

ShareMD has acquired a dozen healthcare and medical/professional properties in the past two years totaling almost 850,000 sf in Florida in addition to its 170,000 sf California healthcare portfolio.

“We were attracted to this opportunity to further expand our portfolio in South Florida”, said ShareMD founder and Chief Investment Officer, George Scopetta. “And, our team’s private equity backing and our track record of nearly one million square feet of properties purchased over the past three years provided the seller with confidence that we could close quickly, and with certainty.”

The purchase was financed by a loan from American National Insurance Company facilitated by Pacific Southwest Realty Services (PSRS) Genworth Life Insurance Company. Greenberg Traurig provided legal counsel, and title services were provided by Chicago Title. Additional purchase transaction support was provided by ShareMD Asset Management, a healthcare facility-focused management company which also manages ShareMD’s bicoastal portfolio.

 

Weston Medical Surgical Pavilion 760x320

A two-story medical office building in Weston sold for $17.2 million.

Two affiliates of Montecito Medical Real Estate sold the 32,559-square-foot building at 2229 North Commerce Parkway known as Weston Medical Surgical Pavilion to another affiliate of Montecito named MMAC Pix Weston FL SPE LLC, records show.

The deal was financed with a $22.3 million loan from BMO Harris Bank.

Montecito affiliates Weston Surgery SPE LLC and MMPC Maine I LLC had paid $11.5 million for the property in 2017.

 

Click here to read more about this story.

 

800 2nd Avenue South

A prime lot in the heart of downtown could soon be redeveloped after the City of St. Petersburg received an unsolicited offer for the city-owned block at 800 2nd Avenue South.

Moffitt Cancer Center along with United Insurance Holdings Corp. and TPA Group submitted an offer to purchase the 4.59 acre site in order to develop a mixed-use project which would include a cancer care center, a future headquarters building for UPC, a residential building, and a public parking garage.

UPC Insurance had previously planned to purchase the site in 2018 to build a 150,000 square foot office building, a 500-space public parking garage, and a potential hotel. However, UPC scrapped the project in 2020 after reporting higher than expected losses as a result of a busy hurricane season and cited the need to reassess office space needs due to the COVID-19 pandemic.

A site plan of the proposed development includes a medical office component, residential tower, future UPC Insurance office building, 500-space public parking garage, and a potential hotel.

moffitt cancer center_upc st pete project site plan

A SITE PLAN OF THE PROPOSED DEVELOPMENT INCLUDES A MEDICAL OFFICE COMPONENT, RESIDENTIAL TOWER, FUTURE UPC INSURANCE OFFICE BUILDING, 500-SPACE PUBLIC PARKING GARAGE, AND A POTENTIAL HOTEL.

Like UPC’s prior proposal, the group is offering $5 million for the land. The first phase of the project would include a 75,000 square foot outpatient building, where Moffitt hopes to provide services including: medical oncology, hematology oncology, radiation therapy, infusion, and more. The building would be three stories with 25,000 square foot floor plates and would front 1st Avenue South and Dr. MLK Jr. Street. The facility would be Moffitt’s first expansion into Pinellas County.

Also included in the first phase of the project is a 30-story residential building on the west side of the block which would include 350 units, of which at least 10% would be workforce housing units, along with ground floor retail.

The buildings would surround a 500-space public parking garage which would be available to the public after hours and on the weekends.

On the southern portion of the lot, which currently houses a surface parking lot, would be a future development pad for a new UPC Insurance headquarters building. Preliminary plans indicate the building would be 99,000 square feet with 24,750 square foot floor plates. UPC Insurance’s new office building would be included in a second phase of the project and would also include an expansion of the parking garage.

A site plan, which was submitted with the offer, includes a potential pad for a future hotel or “other downtown-centric” use.

UPC INSURANCE’S PREVIOUS PROPOSAL RENDERING

UPC INSURANCE’S PREVIOUS PROPOSAL ON THE SITE, WHICH WAS CANCELLED IN 2020, WAS DESIGNED BY ALFONSO ARCHITECTS, WHO HAS BEEN RETAINED TO DESIGN THE RESIDENTIAL BUILDING ON THE SITE.

The redevelopment of the lot calls for the vacation of 2nd Avenue South between 8th Street and Dr. MLK Jr. Street.

TPA Group is working with Alfonso Architects and George F. Young Civil Engineers to design the residential tower. Alfonso Architects was previously involved with UPC Insurances prior proposal to redevelop the lot. Barr & Barr will serve as the construction manager and design builder.

As a result of unsolicited offer, and pursuant to Florida Statutes, the city must invite additional alternative proposals from private developers, or anyone interested in the lease or purchase of the site. All proposals that are compatible with the Intown Redevelopment Area plan and delivered no later than 10am on September 15, 2021 will be considered. The city will decide whether to move forward once all proposals have been reviewed.

 

Source:  St. Pete Rising

1905 clint moore 760x320

JLL Capital Markets closed the sale of 1905 Clint Moore Road, a 102,186-square-foot medical office building in Boca Raton.

JLL brokered the sale of the property between the seller, 1905 Associates, LLC, and the buyer, a publicly traded real estate investment firm.

The JLL Capital Markets team was led by Senior Managing Director Chris Drew, Director Matthew McCormack, Senior Managing Director Hermen Rodriguez, and Managing Director Ike Ojala with analytical support from Max Lescano.

The 1996-built property last traded in December 2004 for $23,500,000.

casasantangeloaerialrendering 760x320

The Casa Sant’Angelo senior living facility has broken ground in Miramar after the developer obtained $21.6 million in construction loans.

The project is on the 5.25-acre site at 16650 Miramar Parkway, which the developer has on a land lease from the Archdiocese of Miami. Miami-based nonprofit Catholic Health Services will operate the senior facility.

Wells Fargo Bank and First Housing Development Corp. of Florida provided tax-exempt mortgages of $17.65 million and $3.95 million, respectively, to Casa Sant’Angelo Ltd. and Miramar Senior Housing Project, both managed by CHS CEO Joseph M. Catania.

 

Click here to read more about this story.

 

hialeah hospital 760x320

A Birmingham, Alabama-based real estate investment trust that binges on medical sites picked up Hialeah Hospital for $133.7 million.

An affiliate of Dallas-based Tenet Healthcare is the seller of the 378-bed medical facility at 651 East 25th Street in Hialeah, records show.

The purchase completes Medical Properties Trust’s play for a South Florida medical portfolio totaling $900 million. Including Hialeah Hospital, MPT has acquired five hospital properties and medical office buildings previously owned by Tenet.

MPT has a leaseback agreement with Dallas-based Steward Healthcare System involving Hialeah HospitalPalmetto General Hospital in Hialeah, Coral Gables Hospital in Coral Gables, North Shore Medical Center near North Miami, and Florida Medical Center in Lauderdale Lakes. Steward paid Tenet $1.1 billion for the hospitals’ operations and associated physician practices, according to a news release. MPT bought the real estate that will be leased to Steward.

In recent weeks, MPT paid $315 million for Palmetto General, an adjacent garage and physicians’ offices; the North Shore and Coral Gables sites for a combined $276 million; and Florida Medical, along with three office buildings and a medical office mall for $171 million. The sellers of the properties in Lauderdale Lakes are a consortium that included Tenet, Scottsdale, Arizona-based Healthcare Trust of America, and Dallas-based Altera Development Company.

In a statement prior to the transactions, MPT CEO Edward K. Aldag Jr. said the Tenet properties are “essential community hospitals in areas with positive demographic trends at a very attractive yield.”

MPT specializes in hospital and medical office investments, holding $22.3 billion in assets, mostly in the U.S., but also properties in Europe and Australia, according to its website.

Tenet, which is also publicly traded, still owns ambulatory facilities in Miami-Dade and Broward, as well as the 493-bed Delray Medical Center in Delray Beach that underwent a $79.4 million expansion.

 

Source:  The Real Deal